subject: 4 Home Buying Tasks You Must Not Skip [print this page] 4 Home Buying Tasks You Must Not Skip 4 Home Buying Tasks You Must Not Skip
The real estate industry wants us to ignore the whole concept of "buyer beware" and just pay full asking price...or moreso they can make money fast.
So here are my recommendations to help you protect your interests in an uncaring world.
Don't forget to ask to see the utility bills for at least 6 months to a year on a house you are considering buying. If any bill is excessive it may give you a clue about flaws in the insulation, plumbing or other issues you need to know that can cost you big money.
Don't forget the inspection. Hire a home inspector to look over the property. Any flaws that are present could cost you a lot of money if you don't find out about them until after you are the new owner. One house we considered buying was putting out more carbon monoxide from the heating system than heat. A flaw like that could be deadly. HVAC systems cost big money. Foundations that are cracked and crumbling are a problem, too. Find a good inspector without the help of a real estate company. They are often in cahoots with each other. You pay for the inspection and the inspector needs to be aware that he/she works for you.
Don't forget to get real data on current re-sale prices in your target neighborhood. Study the selling (closing) prices of homes in the area you want to call home. This data is available in the tax records of the municipality as public information. Only very recent re-sales matter. An appraiser can get you the real data on what houses are selling for in the immediate area of the home you are considering. A real estate agent could also get this data from MULTILIST, but they often don't want to give you the relevant facts, or they don't know how to do it right. Ask them for a list of all closed sales that have occurred in the immediate neighborhood in the last 60 days, leaving out all new homes. Drop the high and the low and average the rest of homes similar to the one you want.
Never skip the title search. Many times real estate agents and builders will try to get you to ignore this essential step. It should be done the day of the closing if possible. It is designed to give you a clear title without construction liens or debt liens. You DON'T want to be paying someone else's bills, do you?
It's important to take these kinds of steps to protect yourself in any real estate market, good or bad. It's just common sense. But when markets are trending down it's especially important.
